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Slide 1: Chapter 2 Creating Value Through Customer Satisfaction and Quality Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 2: Chapter 2 Objectives • Explain the relationships between value, customer satisfaction, and quality. Identify the major components of customer satisfaction. List the goals of internal marketing. Explain the primary methods by which marketers measure customer satisfaction. Outline the historical development of the quality movement. © 1998 The Dryden Press • • • • Contemporary Marketing Wired, 9th Edition
Slide 3: Chapter 2 Objectives • Discuss the roles of top management and employees in implementing total quality management (TQM). Outline the objectives of a marketing audit. Explain the benchmarking process and its role in improving a marketing strategy. Describe how an organization can work toward continuous improvement in its marketing activities. Explain how marketing managers can deliver value to customers by balancing the marketing mix elements. © 1998 The Dryden Press • • • • Contemporary Marketing Wired, 9th Edition
Slide 4: Value The customer’s perception of the balance between the quality of goods or services that a firm provides and their prices. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 5: Value-added Increased worth of a good or service resulting from added features, lower price, enhanced customer service, a strengthened warranty or other marketing mix improvements that increase customer satisfaction. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 6: Quality The degree of excellence or superiority of an organizations goods and services. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 7: Customer Satisfaction The result of a good or service meeting or exceeding the buyer’s needs and expectations. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 8: Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 9: Table 2.1 Industry Leaders in Customer Satisfaction Product Category Food processing Automobiles Parcel delivery Soft drinks Personal care and cleaning Household appliances Consumer electronics Long-distance telephone service Department stores Gasoline-service stations Contemporary Marketing Wired, 9th Edition Company H.J. Heinz Cadillac UPS Coca-Cola Dial; Procter & Gamble* Whirlpool Zenith AT&T Nordstrom Texaco Score 90 88 87 87 85 85 84 83 83 82 © 1998 The Dryden Press
Slide 10: Table 2.1 Industry Leaders in Customer Satisfaction Product Category Supermarkets Apparel Beer Athletic shoes Personal computers Airlines Fast-food restaurants Government agencies National Average Publix Liz Clairborne Anheuser-Busch Nike Hewlett-Packard Southwest Wendy’s International Internal Revenue Service Company Score 82 81 79 77 77 76 73 50 72 * First place tie. Source: Data reported in “Americans are More Finicky Than Ever,” Fortune, February 3, 1995, pp. 108-110. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 11: Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 12: Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 13: Applebee’s 식당 손님의 반복 방문 이유 • 맛 있는 음식 • 반겨주는 주인과 종업원 • 신속한 서비스 • 주요 요소 : 분위기 , 개인 존중 , 성과 , 조 명 , 음식 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 14: External Customer A person or organization that buys or uses another firm’s good or services. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 15: Internal Customer An employee or department within an organization whose job performance depends on the work of another employee or department. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 16: Internal Marketing Management actions that help all members of an organization to understand, accept and fulfill their respective roles in implementing its marketing strategy. Excellent Co.’s Employees informed of goals, strategies and customer’s needs. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 17: Intranet An internal network that conforms to internet standards in order to support two-way organizational communications. 대상 : 종업원 , 공급자 (Chrysler) Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 18: Figure 2.4 Three Steps to Measure Customer Satisfaction Customer Satisfaction Ongoing Measurement Customer Feedback Understanding Customer Needs Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 19: 고객으로부터의 피드백 • 반동적 방법 (reactive): 080 전화 , 위장쇼핑 + 설문지 , • 진취적 방법 (proactive): 방문 , 전화 만족도 조사 (AT&T, Pizza Hut), 설문조사 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 20: Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 21: Customer Satisfaction Measurement (CSM) Program A set of ongoing procedures for measuring customer feedback against customer satisfaction goals and developing an action plan for improvement. MicroScan 의료장비 : 고객의 반응에 대한 대응의 유무가 사업의 부침을 초래 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 22: Total Quality Management (TQM) An effort to involve all employees in a firm to continually improve products and work processes with the goal of achieving customer satisfaction and world-class performance. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 23: Figure 2.6 Applying Total Quality Management               Drive out fear. Eliminate quotas and numerical goals. Breakdown all barriers between departments. Eliminate inspections. Learn to build products right the first time. Institute a vigorous program of education. Remove barriers that rob workers of their right to pride of workmanship. Institute leadership. The objective of leadership should be to help workers do a better job. Eliminate slogans, exhortations, and production targets. Adopt a new philosophy. Managers must awaken to the challenge, learn their responsibilities, and take on leadership for a change. End the practice of awarding business based on the price tag. Move toward a single supplier for any one item. Base this long-term relationship on loyalty and trust. Improve constantly and forever the system of production, marketing, and service. Put everybody to work to accomplish the transformation. Institute job training. Create constancy of purpose toward the improvement of goods and services in order to become competitive, to stay in business, and to provide jobs. © 1998 The Dryden Press Contemporary Marketing Wired, 9th Edition
Slide 24: Figure 2.7 How Quality Improvements Benefit and Organization External Quality Improvements Increased Customer Satisfaction Lower Costs Internal Quality Improvements Increased Productivity Lower Prices Increased Marketplace Increased Earnings & Profits Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 25: Statistical Quality Control A set of methods for applying statistical techniques to locate and measure quality problems in production and marketing activities. - Walter Shewhart, W. Edward Deming Joseph Juran, A.V. Feigenbaum(TQC) Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 26: Figure 2.8 Malcolm Baldrige National Quality Award Criteria Criteria Description The effectiveness of systems to determine customer and market requirements and enhance customer satisfaction The senior executives’ success in creating and sustaining a quality culture The effectiveness of integrating quality requirements into business plans The effectiveness of information collection and analysis for quality improvement and planning The success of efforts to develop and realize the full potential of the workforce for quality The effectiveness of systems and processes for assuring the quality of all operations The results in quality achievement and quality improvement, demonstrated through quantitative measures Points Customer and Market Focus 80 Leadership Strategic Planning Information and Analysis Human Resource Development and Management Process Management Business Results Contemporary Marketing Wired, 9th Edition 110 80 80 100 100 450 © 1998 The Dryden Press
Slide 27: ISO 9000 A set of standards for quality management and quality assurance developed by the International Standards Organization in Switzerland for countries in the European Union. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 28: Key Components of Effective TQM Programs • Top Management Involvement • Employee Involvement • Conducting a Marketing Audit • Benchmarking • Continuous Improvement Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 29: Employee Involvement Motivating employees to improve the job performance through internal marketing: empowerment, training and teamwork. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 30: Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 31: Empowerment Giving employees authority to make decisions about their work without supervisory approval. 생산직 : 라인 스톱 , 판매직 : 고객불만 해 결 Sears: 점포별 , 부서별 처리 후 보고 . 고객은 자신의 제안이 2 주 만에 반영되었다고 의 기 양양 . Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 32: 종업원 교육 • • • • 목표 , 전략 , 전술에 대한 이해 고객의 필요와 기대에 대한 인식과 해결 작업품질을 측정 검토 하는 기술 투자효과 Motorola: 수익 $30 / 교육비 $1 Edy’s Ice Cream: 생산성 : 57% 향상 재고 : 66% 감소 매출 : 830% 증가 © 1998 The Dryden Press Contemporary Marketing Wired, 9th Edition
Slide 33: Quality Circle A small group of employees from one work area or department who meet regularly to identify and solve problems. Sears: foreign language speaker list 작성 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 34: Cross-functional Team A group of employees from different departments who work together on a specific project. 예 : 신제품 개발 팀 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 35: Self-managed Team A group of employees who work with little or no supervision. 팀원들이 작업계획 , 업무파악 연구 , 작업 책임 , 결과 책임 : Kodak 의 Zebras Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 36: Marketing Audit A thorough objective evaluation of an organizations marketing philosophy goals, policies, tactics, practices, and results. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 37: Figure 2.10a A Sample Marketing Audit Outline Customer Philosophy Does management recognize the importance of designing the company to serve the needs and wants of chosen markets? 0 Management primarily thinks in terms of selling current and new products to whoever will buy them 1 Management thinks in terms of serving a wide range of markets and needs with equal effectiveness 2 Management thinks in terms of serving the needs and wants of well-defined markets chosen for their long-term growth and profit potential for the company. Does management develop different offerings and marketing plans for different segments of the market? 0 No. 1 Somewhat. 2 To a good extent. Does management take a whole marketing system view (suppliers, channels, competitors, customers, environment) in planning its products? 0 No. Management concentrates on selling and servicing its immediate customers. 1 Somewhat. Management takes a long view of its channels,although the bulk of its effort go to selling and servicing the immediate customers 2 Yes. Management takes a whole marketing view, recognizing the threats and opportunities created for the company by changes in any part of the system. © 1998 The Dryden Press Contemporary Marketing Wired, 9th Edition
Slide 38: Figure 2.10b A Sample Marketing Audit Outline Integrated Marketing Organization Is there high-level marketing integration and control of the major marketing functions? 0 No. Sales and other marketing functions are not integrated at the top and there is some unproductive conflict. 1 Somewhat. There is formal integration and control of the major marketing functions but less than satisfactory coordination and cooperation. 2 Yes. The major marketing functions are effectively integrated. Does marketing management work well with management in research, manufacturing, physical distribution, and finance? 0 No. There are complaints that marketing is unreasonable in the demands and costs it places on the other departments. 1 Somewhat. The relations are amicable although each department pretty much acts to serve its own power interest. 2 Yes. The departments cooperate effectively and resolve issues in the best interest of the company as a whole. How well organized is the new product development process? 0 The system is ill-defined and poorly handled. 1 The system formally exists, but lacks sophistication. 2 The system is well-structured and professionally staffed. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 39: Figure 2.10c A Sample Marketing Audit Outline Adequate Marketing Information When were the latest marketing research studies of customers, buying influences, channels, and competitors conducted? 0 Several years ago. 1 A few years ago. 2 Recently. How well does management know the sales potential and profitability of different market segments, customers, territories, products, channels, and order sizes? 0 Not at all. 1 Somewhat. 2 Very well. What effort is expended to measure the cost effectiveness of different marketing expenditures? 0 Little or no effort. 1 Some effort. 2 Substantial effort. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 40: Figure 2.10d A Sample Marketing Audit Outline Strategic Orientation What is the extent of formal marketing planning? 0 Management does little or no formal marketing planning. 1 Management develops an annual marketing plan. 2 Management develops a detailed annual marketing plan and a careful long-range plan that is updated annually. What is the quality of the current marketing strategy? 0 The current strategy is not clear. 1 The current strategy is clear and represents a continuation of traditional strategy. 2 The current strategy is clear, innovative, data-based and well-reasoned. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press What is the extent of contingency thinking and planning? 0 Management does little or no contingency thinking. 1 Management does some contingency thinking, although little formal contingency planning. 2 Management formally identifies the most important contingencies and develops contingency plans.
Slide 41: Figure 2.10e A Sample Marketing Audit Outline Operational Efficiency How well is the marketing thinking at the top communicated and implemented down the line? 0 Poorly. 1 Fairly well. 2 Successfully. Is management doing an effective job with marketing resources? 0 No. The marketing resources are inadequate for the job to be done. 1 Somewhat. The marketing resources are adequate, but they are not employed optimally. 2 Yes. The marketing resources are adequate and are deployed efficiently. Does management show a good capacity to react quickly and effectively to onthe-spot developments? 0 No. Sales and market information is not very current and management reaction time is slow. 1 Somewhat. Management receives fairly up-to-date sales and market information; management reaction time varies. 2 Yes. Management has installed systems yielding highly current information and fast reaction time. Source: Philip Kotler, “From Sales Obsession to Marketing Effectiveness,” Harvard Business Review, (NovemberDecember 1977), pp. 70-71. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 42: Benchmarking Process in which an organization continuously compares and measures itself against business leaders anywhere in the world to learn how it could improve performance. 99.9% 신뢰 : 미국에서 비행기가 매일 18 대 추락 매시간 17,000 우편물 잘못 배달 매주 500 명 수술 사고 매 시간 $2,480 만불 이체 잘못 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 43: Figure 2.11 The Benchmarking Process IDENTIFY Processes for Improvement ANALYZE Internal Processes Feedback IMPLEMENT Improvements Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 44: Critical Success Factor Product or process characteristic that most powerfully affects efforts to gain competitive advantage and achieve long-term success. 예 : 고객을 만족시킬 최고의 서비스 ? 신속한 신제품 도입 ? 주요 영역 : 인력자원 , 정보시스템 , 구매 , 고객서비스 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 45: Xerox 의 Benchmarking 사례 • 대금청구 및 회수 : American Express • 품질 공정 : Florida Power and Light • 보관 , 유통 : L.L. Bean, Hershy Foods, Mary Kay cosmetics • 시행기업 : AT&T, Mariott, IBM Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 46: Figure2-12 Using Chrysler as a Benchmark of Best Practices in Supplier Relations Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 47: Continuous Improvement Process of constantly studying and making changes in work activities, called kaizen in Japan. Reducing Cycle time: Sears 50,000 page 규정집을 16 page 로 Reducing Variation: Elo Toutch Systems 결함률 25% 에서 1% 로 Eliminating Waste: 품질비용 ( 설물 , 재작업 , 고 객 상실 ) 절감 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 48: Cycle Time The time required to complete a work process or activity from beginning to end. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 49: Cost of Quality The total of costs associated with poor quality such as scrap, rework, and loss of customers. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 50: PDCA Cycle Continuous improvement sequence of planning, doing, checking, and acting. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 51: Table 2.2 Applying the PDCA Cycle at Florida Hospital Step Description Analyze work to determine what changes might improve it Example Employees analyzed the hospital’s food-service operations and found that the inefficient layout of the cafeteria’s tray lines sometimes led to food mix-ups. A patient on a restricted diet might receive a tray intended for one on a regular diet and vice versa. The staff experimented with reorganizing the tray lines to reduce the chances of error. They measured the results of change, and found that complaints about the food fell from 12 % to 2 %. Overall patient satisfaction with food increased, even though the meals themselves tasted the same. The new tray line setup was made into a permanent arrangement. © 1998 The Dryden Press Planning Doing Implement need changes Checking Observe effects of the changes Finalize changes in work activities to protect the improvements Acting Contemporary Marketing Wired, 9th Edition
Slide 52: 그림 2-14 품질보증을 통한 제품이 미지 창조 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 53: Mass Customization Providing high-quality competitively priced goods and services tailor-made to customers specifications or needs. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 54: 세계적인 적시 배달 : 고객의 부가가 치 원천 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 55: 품질을 강조하는 가치 - 가격전략 광 고 Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 56: Key Terms value value added quality customer satisfaction external customer internal customer internal marketing intranet customer satisfaction measurement (CSM) program total quality management (TQM) statistical quality control Contemporary Marketing Wired, 9th Edition ISO 9000 employee involvement empowerment quality circle cross-functional team self-managed team marketing audit benchmarking critical success factor continuous improvement PDCA cycle cycle time cost of quality mass customization © 1998 The Dryden Press
Slide 57: Discussion Questions Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 58: Discussion Question According to one study, nearly half of the subscribers to online service providers such as America Online and CompuServe plan to switch to new service providers within a year. Reasons given for wanting to switch include desire for faster service (25%), preference for flat monthly fees (20%), and availability of local dial-in access. Assuming that service providers can find new customers to replace lost subscribers, should they still worry about this trend? Why? What actions would you recommend? Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 59: Discussion Question Apply the continuous improvement principle to a service or procedure at your college or university. Does this service currently satisfy customers as much as it could? If not, why not? How might you reduce the gap between actual and desired service levels? Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 60: Discussion Question Describe a situation in which you as a customer experienced poor quality in either a good or a service. How did this experience affect your feelings toward the company? What advice would you give to that company’s managers? Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 61: Discussion Question Identify a firm in your city or state that you consider to be a world-class competitor in each of the following marketing mix elements: a. Product b. Distribution c. Promotion d. Price Briefly defend your choice. Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press
Slide 62: Discussion Question You’ve been chosen to design and staff a 400-room hotel in New York City. Explain how you would apply the concepts and tactics discussed in this chapter to attract repeat visitors to the hotel. How would your plans affect the hotel’s financial performance? Contemporary Marketing Wired, 9th Edition © 1998 The Dryden Press